CGI Group (NYSE:GIB) Posts Earnings Results, Beats Expectations By $0.01 EPS

CGI Group (NYSE:GIB) (TSE:GIB.A) posted its quarterly earnings results on Wednesday. The technology company reported $1.65 EPS for the quarter, topping the consensus estimate of $1.64 by $0.01, Zacks reports. CGI Group had a net margin of 10.54% and a return on equity of 18.83%.

Here are the key takeaways from CGI Group’s conference call:

• Bookings and backlog remained strong: Q4 bookings were $4.5 billion, a 109% book-to-bill ratio, and contracted backlog reached $32.1 billion, or 1.9 times annual revenue. More than $12 billion is contracted for delivery over the next 12 months.
• Profitability and cash generation improved: Adjusted diluted EPS rose 8.5% year over year to $2.31, while full-year cash from operations increased 11% to $2.5 billion. CGI also raised its quarterly dividend 8.8%.
• Management sees opportunities for further growth: The company reported improving revenue momentum, stronger U.S. federal performance, and a pipeline that grew across core services; it expects continued improvement in fiscal 2027. Executives also cited AI-enabled work and data sovereignty needs as demand opportunities.
• Underlying revenue growth remained modest: Q4 revenue increased 2.5% in constant currency, with acquisitions contributing about 2.4 percentage points. Management also faced questions about weaker new-client bookings, though it pointed to a record backlog and variability in project timing.

CGI Group Stock Down 2.7%

Shares of GIB traded down $2.22 during midday trading on Wednesday, reaching $80.29. 296,087 shares of the stock were exchanged, compared to its average volume of 469,500. CGI Group has a 12-month low of $59.63 and a 12-month high of $95.20. The firm has a 50 day simple moving average of $74.21 and a 200-day simple moving average of $72.22. The company has a quick ratio of 0.66, a current ratio of 0.93 and a debt-to-equity ratio of 0.28. The company has a market cap of $16.63 billion, a price-to-earnings ratio of 13.77 and a beta of 0.42.

Wall Street Analyst Weigh In

GIB has been the topic of several research reports. Royal Bank Of Canada reiterated a “sector perform” rating and issued a $100.00 price objective on shares of CGI Group in a research note on Tuesday, October 6th. Weiss Ratings raised shares of CGI Group from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Wednesday, October 21st. Finally, TD Securities lowered shares of CGI Group from a “buy” rating to a “hold” rating in a research note on Thursday, July 23rd. Six analysts have rated the stock with a Hold rating. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $85.00.

CGI Group Company Profile

CGI Inc., formerly known as CGI Group, is a Canadian information technology and business consulting company founded in 1976 in Montréal. It works with businesses and government organizations to plan, build and operate technology and business systems. The company provides IT and business consulting, systems integration, application development and maintenance, managed IT services, and business process services. Its work also covers areas such as cloud computing, cybersecurity, data analytics and digital transformation.